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Teen families, welfare transfers, and the minimum wage: evidence from Canada

Author

Listed:
  • Anindya Sen
  • Hideki Ariizumi

Abstract

This study evaluates the impacts of welfare transfers and the minimum wage on teen family formation by pooling provincial data from Canada between 1990 and 2005. OLS estimates suggest that welfare transfers have had limited impact on teen births. On the other hand, a 10% increase in the minimum wage is significantly correlated with a 3% -5% rise in teen birth rates. This finding is explained by further regressions, which reveal that an increase in the minimum wage is significantly associated with (1) higher earnings among male teens, (2) an increase in teen marriage rates, and (3) an increase in fertility among married teens but not among unmarried females. Finally, estimates based on the 2003 and 2005 waves of the Canadian Community Health Surveys demonstrate that married teens are more likely to engage in sex as well as unprotected intercourse in comparison with single teens.

Suggested Citation

  • Anindya Sen & Hideki Ariizumi, 2013. "Teen families, welfare transfers, and the minimum wage: evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 338-360, February.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:1:p:338-360
    DOI: 10.1111/caje.12004
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    Cited by:

    1. Leigh, J. Paul, 2021. "Treatment design, health outcomes, and demographic categories in the literature on minimum wages and health," Economics & Human Biology, Elsevier, vol. 43(C).
    2. David Slichter, 2023. "The employment effects of the minimum wage: A selection ratio approach to measuring treatment effects," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(3), pages 334-357, April.
    3. Tammy Schirle, 2015. "The effect of universal child benefits on labour supply," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 437-463, May.
    4. repec:plo:pone00:0229676 is not listed on IDEAS
    5. Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 481-514, May.
    6. Kyutaro Matsuzawa & Daniel I. Rees & Joseph J. Sabia & Rebecca Margolit, 2025. "Minimum Wages and Teenage Childbearing in the United States," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 40(4), pages 471-484, June.

    More about this item

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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